Good Advice From Hulu CEO – Don’t Dump Cable

Most of you are aware that Hulu now offers a $10 a month paid subscription program called Hulu Plus. The company is offering additional features with its Plus paid edition that free users will not be receiving. But in a moment of candor, the CEO of Hulu is telling consumers not to dump their cable service. I would imagine that this same advice would apply to those who have satellite service as well.

As with most technologies, Hulu Plus is meant to complement, not replace, traditional TV services. The CEO made a comparison of how smart phones complement, but do not replace, the traditional PC. A recent article also stated:

To spell it out: Hulu’s network owners — GE’s NBC, News Corp.’s Fox, and Disney’s ABC — all have corporate cable siblings, and they all make lots of money from cable subscription fees. (And the broadcasters themselves are trying to get the cable guys to pay them for their stuff, too). So they have no interest in upsetting the likes of Comcast by creating a real cable competitor.

Doesn’t matter what Kilar says, argue the Web TV optimists/cable cynics. They believe that sooner or later the content guys will eventually want to break free from the cable guys and go “over the top” — by selling their stuff direct to consumers, or via rival middlemen like Hulu or perhaps Apple.

Interesting take. But wouldn’t it be more likely that one of the cable carriers like Comcast would buy Hulu?